Illinois General Assembly - Full Text of SB1821
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Full Text of SB1821  97th General Assembly


Sen. John M. Sullivan

Filed: 3/14/2011





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2    AMENDMENT NO. ______. Amend Senate Bill 1821 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Carbon Dioxide Transportation and Sequestration Act.
6    Section 5. Legislative purpose. Pipeline transportation of
7carbon dioxide for sequestration, enhanced oil recovery, and
8other purposes is declared to be a public use and service, in
9the public interest, and a benefit to the welfare of Illinois
10and the people of Illinois because pipeline transportation is
11necessary for sequestration, enhanced oil recovery, or other
12carbon management purposes and thus is an essential component
13to compliance with required or voluntary plans to reduce carbon
14dioxide emissions from "clean coal" facilities and other
15Illinois sources. Carbon dioxide pipelines are critical to the
16promotion and use of Illinois coal and also advance economic



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1development, environmental protection, and energy security in
2the State.
3    Section 10. Definitions. As used in this Act:
4    "Carbon dioxide pipeline" or "pipeline" means the in-state
5portion of a pipeline, including appurtenant facilities,
6property rights, and easements, that are used exclusively for
7the purpose of transporting carbon dioxide to a point of sale,
8storage, enhanced oil recovery, or other carbon management
10    "Clean coal facility" has the meaning ascribed to that term
11in Section 1-10 of the Illinois Power Agency Act.
12    "Clean coal SNG facility" has the meaning ascribed to that
13term in Section 1-10 of the Illinois Power Agency Act.
14    "Clean coal SNG brownfield facility" has the meaning
15ascribed to that term in Section 1-10 of the Illinois Power
16Agency Act
17    "Commission" means the Illinois Commerce Commission.
18    "Sequester" has the meaning ascribed to that term in
19Section 1-10 of the Illinois Power Agency Act.
20    "Transportation" means the physical movement of carbon
21dioxide by pipeline conducted for a person's own use or account
22or the use or account of another person or persons.
23    Section 15. Scope. This Act applies only to an owner or
24operator of a pipeline designed, constructed, and operated to



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1transport and to sequester carbon dioxide produced by a clean
2coal facility, by a clean coal SNG facility, by a clean coal
3SNG brownfield facility, or by any other source that will
4result in the reduction of carbon dioxide emissions from that
5source. Further, this Act applies only to a person or entity
6authorized to do business in Illinois who is authorized to
7transport carbon dioxide by pipeline and has obtained a
8certificate of authority from the Commission pursuant to this
10    Section 20. Application.
11    (a) No person or entity may construct, operate, or repair a
12carbon dioxide pipeline unless the person or entity possesses a
13certificate in good standing. No person shall begin or continue
14construction of a carbon dioxide pipeline unless the person
15possesses a certificate in good standing.
16    (b) The Commission, after a hearing, shall grant an
17application for a certificate authorizing the construction and
18operation of a carbon dioxide pipeline to the extent that it
19finds that the application was properly filed; the applicant is
20fit, willing, and able to construct and operate the pipeline in
21compliance with this Act and with Commission regulations and
22orders; and the proposed pipeline is consistent with the public
23interest, public benefit, and legislative purpose as set forth
24in this Act. Evidence encompassing any of the factors described
25in items (1) through (9) of this subsection (b) that is



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1submitted by the applicant, any other party, or the
2Commission's staff shall also be considered by the Commission.
3    In its review of an application for a certificate of
4authority to construct and operate a proposed carbon dioxide
5pipeline and any alternate locations for that proposed pipeline
6or facility, the Commission shall consider, but not be limited
7to, the following:
8        (1) that the applicant has filed or will timely file
9    with the Pipeline and Hazardous Materials Safety
10    Administration of the U.S. Department of Transportation
11    all forms required by that agency in advance of
12    constructing a carbon dioxide pipeline;
13        (2) that the applicant has filed or will timely file
14    with the U.S. Army Corps of Engineers all applications for
15    permits required by that agency in advance of constructing
16    a carbon dioxide pipeline;
17        (3) that the applicant has entered into an agreement
18    with the Illinois Department of Agriculture that governs
19    the mitigation of agricultural impacts associated with the
20    construction of the proposed pipeline;
21        (4) any evidence regarding the applicant's financial,
22    managerial, legal, and technical qualifications necessary
23    to construct and operate the proposed carbon dioxide
24    pipeline;
25        (5) any evidence of the effect of the pipeline upon the
26    economy, infrastructure, and public safety presented by



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1    local governmental units that will be affected by the
2    proposed pipeline route;
3        (6) any evidence of the effect of the pipeline upon
4    property values presented by property owners who will be
5    affected by the proposed pipeline or facility, provided
6    that the Commission need not hear evidence as to the actual
7    valuation of property such as that as would be presented to
8    and determined by the courts under the Eminent Domain Act;
9        (7) any evidence presented by the Department of
10    Commerce and Economic Opportunity regarding the current
11    and future local, State-wide, or regional economic effect,
12    direct or indirect, of the proposed pipeline or facility
13    including, but not limited to, ability of the State to
14    attract economic growth, meet future energy requirements,
15    and ensure compliance with environmental requirements and
16    goals;
17        (8) any evidence addressing the factors described in
18    items (1) through (9) of this subsection (b) or other
19    relevant factors that is presented by any other State
20    agency, the applicant, a party, or other entity that
21    participates in the proceeding, including evidence
22    presented by the Commission's staff; and
23        (9) any evidence presented by any State or federal
24    governmental entity as to how the proposed pipeline will
25    affect the security, stability, and reliability of energy.
26    In its written order, the Commission shall address all of



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1the evidence presented, and if the order is contrary to any of
2the evidence, the Commission shall state the reasons for its
3determination with regard to that evidence.
4    (c) When an applicant files its application with the
5Commission, it shall provide notice to each local government
6where the proposed pipeline will be located and include a map
7of the proposed pipeline route. The applicant shall also
8publish notice in a newspaper of general circulation in each
9county where the proposed pipeline is located.
10    (d) An application filed pursuant to this Section may
11request either that the Commission review and approve a
12specific route for a carbon dioxide pipeline, or that the
13Commission review and approve a project route width that
14identifies the areas in which the pipeline would be located,
15with such width ranging from the minimum width required for a
16pipeline right-of-way up to 500 feet in width. The purpose for
17allowing the option of review and approval of a project route
18width is to provide increased flexibility during the
19construction process to accommodate specific landowner
20requests, avoid environmentally sensitive areas, or address
21special environmental permitting requirements.
22    (e) An applicant under this Act may request the issuance of
23a certificate of authority from the Commission for the
24construction and operation of a carbon dioxide pipeline at the
25same time, and as part of the same application, as its request
26for a certificate of good standing.



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1    The Commission's rules shall ensure that notice of such a
2consolidated application is provided within 30 days after
3filing to the landowners along a proposed project route, or to
4the potentially affected landowners within a proposed project
5route width, using the notification procedures set forth in the
6Commission's rules. If a consolidated application is
7submitted, then the requests shall be heard on a consolidated
8basis and a decision on all issues shall be entered within the
9time frames stated in subsection (f) of this Section. In such a
10consolidated proceeding, the Commission may consider evidence
11relating to the same factors identified in items (1) through
12(9) of subsection (b) of this Section. If the Commission grants
13approval of a project route width as opposed to a specific
14project route, then the applicant must, as it finalizes the
15actual pipeline alignment within the project route width, file
16its final list of affected landowners with the Commission at
17least 14 days in advance of beginning construction on any tract
18within the project route width and also provide the Commission
19with at least 14 days' notice before filing a complaint for
20eminent domain in the circuit court with regard to any tract
21within the project route width.
22    (f) The Commission shall make its determination on any
23application filed pursuant to this Section and issue its final
24order within 6 months after the date that the application is
25filed unless an extension is granted as provided in this
26subsection (f). The Commission may extend the 6-month time



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1period for issuing a final order on an application filed
2pursuant to this Section up to an additional 3 months if it
3finds, following the filing of initial testimony by the parties
4to the proceeding, that due to the number of affected
5landowners and other parties in the proceeding and the
6complexity of the contested issues before it, additional time
7is needed to ensure a complete review of the evidence. If an
8extension is granted, then the schedule for the proceeding
9shall not be further extended beyond this 3-month period, and
10the Commission shall issue its final order within the 3-month
11extension period. The Commission shall also have the power to
12establish an expedited schedule for making its determination on
13an application filed pursuant to this Section in less than 6
14months if it finds that the public interest requires the
15setting of such an expedited schedule.
16    (g) Within 6 months after the Commission's entry of an
17order approving either a specific route or a project route
18width under this Section, the owner or operator of the carbon
19dioxide pipeline that receives that order may file supplemental
20applications for minor route deviations outside the approved
21project route width, allowing for additions or changes to the
22approved route to address environmental concerns encountered
23during construction or to accommodate landowner requests.
24Notice of a supplemental application shall be provided to any
25State agency that appeared in the original proceeding or
26immediately affected landowner at the time that supplemental



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1application is filed. The route deviations shall be approved by
2the Commission within 45 days, unless a written objection is
3filed to the supplemental application within 20 days after the
4date the supplemental application is filed. Hearings on any
5such supplemental application shall be limited to the
6reasonableness of the specific variance proposed, and the
7issues of public need, public interest and benefit of the
8project, or fitness of the applicant shall not be reopened in
9the supplemental proceeding.
10    (h) The rules of the Commission may include additional
11options for expediting the issuance of certificates and
12approvals under this Section. If an applicant elects to use an
13option provided for in the rules, then the rules may provide
14that: (1) the applicant must request the use of the expedited
15process at the time of filing its application; (2) the
16Commission may engage experts and procure additional
17administrative resources that are reasonably necessary for
18implementing the expedited process; and (3) the applicant must
19bear any additional costs incurred by the Commission as a
20result of the applicant's use of the expedited process.
21    (i) A certificate of authority to construct and operate a
22carbon dioxide pipeline issued by the Commission shall contain
23and include all of the following:
24        (1) a grant of authority to construct and operate a
25    carbon dioxide pipeline as requested in the application,
26    subject to the laws of this State;



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1        (2) a grant of authority to use, occupy, and construct
2    facilities in any designated public right-of-way for the
3    construction and operation of the carbon dioxide pipeline
4    subject to the laws of this State; and
5        (3) a limited grant of authority to take and acquire an
6    easement in any property or interest in property for the
7    construction, maintenance, or operation of a carbon
8    dioxide pipeline in the manner provided for the exercise of
9    the power of eminent domain under the Eminent Domain Act.
10    The limited grant of authority shall be restricted to, and
11    exercised solely for, the purpose of siting,
12    rights-of-way, and easements appurtenant, including
13    construction and maintenance. The applicant shall not
14    exercise this power until it has used reasonable and good
15    faith efforts to acquire the property or easement thereto.
16    The applicant may thereafter use this power when the
17    applicant determines that the easement is necessary to
18    avoid unreasonable delay or economic hardship to the
19    progress of activities carried out pursuant to the
20    certificate of authority.
21    Section 25. Procedures. Notwithstanding any other
22provision of this Act, any power granted pursuant to this Act
23to acquire an easement is subject to, and shall be exercised in
24accordance with, the Eminent Domain Act.



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1    Section 30. Safety. A carbon dioxide pipeline owner shall
2construct, maintain, and operate all of its pipelines, related
3facilities, and equipment in this State in a manner that poses
4no undue risk to its employees or the public. The Commission
5shall adopt federal safety regulations governing the
6construction, maintenance, and operations of carbon dioxide
7pipelines, related facilities, and equipment to ensure the
8safety of pipeline employees and the public.
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".